The office market and the recession: your guide
Want to know about the effects of recession on the commercial property market? Read on for the key points of CBRE’s Credit Crunch and Commercial Property Market report
We all know the recession had a hard-hitting impact on every area of the global economy, including the commercial property market, but how exactly did it change the lay of the land for office landlords and tenants? Help Moving Office has plenty of moving office advice that will guide you through the effects of the recession and assess the consequences of the global credit crunch on the capital property market according to CBRE’s Credit Crunch and Property Market report.
The impact of the credit crunch has left occupational demand ‘uncertain’.
Downward pricing adjustments have been brought in with the hope of boosting occupational demand. This resulted in ‘significant falls’ in the number of transactions occurring in the office market.
The effects of the credit crunch are inter-related with investment, occupational demand and property development all having effects on the other areas. This in turn affects the supply and demand and thus the rent commanded for office space.
Occupational demand is affected by the employment market and will reflect its changing state.
The office market in particular left exposed by the credit crunch is that of Central London.
The impact noted on rents and capital values across the capital office market was considerable.
Development of new offices for 2009 and 2010 were significantly curbed in order to account for lessening market confidence. There is also less finance available for new development projects.
But don't be disheartened, the office market is finally stabilising as the country emerges from recession and now is a great time to capitalise on favourable office rates and incentive schemes.
